TB:" glasperlenspiel "
well, you know Berney - last year we chewed a lot about what kinda stox Gonzo should put into CORE for a year, btw, thank-you again, all your help with that...
...and this year I'm thinking about reducing number of stocks and incorporating some indices. But I haven't really decided, TB. Just chewing on it.
TEL = [ T + WCOM + SBC ] : [ LU + NT ]
INT = [ DT + TMX + NTT ] : [ ALA + NOK ]
retail? here's what I'm chewing on now...
RLX = [ WMT + HD + BBY ] : [ UPS + FDX ] ???
RLX = [ WMT + HD + BBY ] : [ YHOO + ARBA ] ???
...TAN is a good substitute for BBY.
...freight is amplified by retail volume, but this glass bead works better with an OIL : XAL construct, imho.
...ARBA is the "B2B" bellwether; EBAY also comes to mind; ie., the flip side amplifier of retail bellwethers is E*TAIL, Berney.
fwiw, RLX should always be balanced by NF.X financials; eg.,
( [ GE + C + AIG ] : [ MWD + SCH ] ) : ( [ WMT + HD + BBY ] : [ YHOO + ARBA ] )
DRG, you leverage pharmas : biotechs. From what I can tell, you gotta spread out the beans a lot; eg.,
60:40 = [ MRK+JNJ+BMY+PFE+SGP+WLA ] : [ AMGN+BGEN+DNA+MEDI ]
...and so this (simpler) construct works well (ie., will beat the index basis)
DRG ===> 60 : 40 = [ 3 x FSPHX ] : [ [MRK] : [AMGN] ]
...as well as this
BTK ===> 60 : 40 = [ 3 x FBIOX ] : [ [AMGN] : [BGEN] ]
interestingly, the following will beat the worst-performing index this year, UTY.X - Utilities...
UTY ===> 60 : 40 = [ 3 x FIUIX ] : [ [DUK] : [ENE] ]
but, you should balance (UTY = ~BONDS) such that...
50:50 = [ XOI : OSX ] : [ UTY : XAL ]
...where 60:40 = XOI:OSX and 60:40 = UTY:XAL. This is an excellent construct for preservation of kapital, especially within a tax-free IRA with DRIPs enabled.
An example (with stox, rather than indices - I'm playing with index funds and index options now) would be...
( [ XON+BPA+DD : SLB+HAL ] : [ DUK+ENE+WMB : UPS+FDX ] )
...which has around a ~2.5% taxable equivalent APR yield.
-Steve |
